Premier African Minerals Increase Resource Estimate For RHA Mine

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Mining company Premier African Minerals Ltd said on Friday it has upgraded and increased the mineral resource estimate for the RHA Tungsten Mine in Zimbabwe.

In the underground measured resource category, there was a 32% increased to 0.029 million tonnes and a 52% increase in grade to 5.45 kilograms of tungsten oxide per tonne.

The indicated resource category saw a 33% increase to 0.076 million tonnes, with a 95% increase in grade to 6.31 kilograms of tungsten oxide per tonne.

The overall underground grade saw an 11% increase to 4.72 kilograms of tungsten oxide per tonne and a 16% increase in the total underground mineral resources contained metal to 6.3 million kilograms of tungsten oxide.

“This increase in tonnes and grade of the underground Mineral Resources at RHA provides both higher confidence in these Mineral Resources at RHA and supports our long-term confidence in the mine. At the same time, the recent substantial increase in the price of ammonia paratungstate to USD310 to USD325 per metric tonne unit has reduced the breakeven throughput tonnage required from underground ore at the predicted resource grade to approximately 4,500 tonnes per month and increases potential profitability as and when plant optimisation completes and we are able to process at the higher throughput tonnages projected for later in the fourth quarter this year,” said Chief Executive Officer George Roach.

“Most importantly the reduced breakeven point can also be achieved without any feed from open pit operations and supports our determined efforts over the past year to bring RHA into continuous production. We have commenced an independent review of the open pit Mineral Resources and we will report further when this review is completed,” Roach added.

Shares in Premier African Minerals were up 1.9% at 0.417 pence on Friday.-AllianceNews